Consulting giant PwC today announced a new ‘trade community system’ powered by blockchain technology, with the Port of Brisbane becoming the first Australian port to use blockchain technology in the supply chain system.
The Port of Brisbane made a little bit of history earlier today by becoming the first Australian port to utilize blockchain technology as part of its supply system. This project will use blockchain technology to link supply chain information and reduce complexity in international business processes. It represents the culmination of years of hard work between the Australian Chamber of Commerce and Industry (ACCI) , and consultancy firm PwC.
The new system will endeavor to connect end-to-end data, therefore improving productivity and reducing costs through the digitized trading of information. The system’s design was based off recommendations from the National Freight and Supply Chain Priorities inquiry report released this month.
The Benefits Of The Blockchain
Blockchain technology is a form of decentralized digital ledger technology. Information held on a blockchain exists as a shared — and continually reconciled — database. Blockchain technology is gradually becoming absorbed into the worlds of business, finance, banking and consumerism. Every day, more of the world’s major companies announce the use of the blockchain in their business, or express an interest in obtaining it.
Blockchain technology is expected to be extremely beneficial for the Port of Brisbane, which is Queensland’s largest multi-cargo port. It covers an area of 1860.5 hectares, and recorded more than 1.22 million container movements between 2016/17.
Around 15% of all information used in an individual import transaction is replicated approximately 30 times, a process that is costly, time consuming and reduces efficiency significantly. Some nine million container movements take place at Australia’s five major ports each year. The trade is projected to increase to 15 million movements by 2025.
Government Enquiry Recommends Blockchain Technology
On 18 May 2018, Australia’s Deputy Prime Minister Michael McCormack released the results of the Inquiry into National Freight and Supply Chain Priorities, carried out by a four-member expert panel. The goal of the enquiry was to aid the development of a National Freight and Supply Chain Strategy through the COAG Transport and Infrastructure Council.
127 submissions were cast, and 200 individuals from 28 industrial bodies and 90 businesses were interviewed. Following this exhaustive research, the Expert Panel recommended 54 “priorities for action” across five critical areas.
Crucially, the panel recognized the benefits blockchain technology would bring as a high impact driving force on freight supply chains in Australia. The blockchain will also streamline the development of automation, energy and climate change, road pricing, end-to-end freight and road and rail.
Today’s news follows Australian prime minister Malcolm Turnbull’s recent mandating of the government’s Digital Transformation Agency (DTA) to study blockchain technology for potential applications across government. One of the first will be the prototype of a new system to deliver social welfare payments over a blockchain to citizens. It is scheduled for review in 2019.